Report: Blackstone wrote down Freescale stake by 85%

SAN FRANCISCOAt the end of 2008, private equity firm Blackstone Group wrote down the value of its investment in Freescale Semiconductor Inc. to $180 million, 15 percent of what it originally invested, according to a Reuters report.

Blackstone was one of a group of private equity firms that took Freescale private in 2006, purchasing the former Motorola chip unit for $17.6 billion. Blackstone invested $1.2 billion in the deal.

Carlyle Group, another private equity fund which also participated, also wrote down the value of its investment in Freescale to 85 percent below cost at the end of last year, according to the report.

The Reuters report cites documents obtained by Thomson Reuters' private equity website peHUB show. Blackstone declined to comment on the documents, according to the report.

This is interesting in that these "investment" firms will take huge tax right-offs while at the same time asking the government for a hand out because they got hurt so bad with the "wrecked" economy. What a pathetic state we live in.